Recently, the Ministry of Food Processing industries (MoFPI) has provided insights into the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY). This is against a backdrop where the ministry unveiled the Pradhan Mantri Formalisation of Micro food processing Enterprises (PM FME) Scheme, under the Atmanirbhar Bharat Abhiyan. The Food Processing industry in India contains sub-segments such as Dairy, Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail, among others.
The Inception of MoFPI’s SAMPADA
The year 2016 saw MoFPI launching an umbrella Scheme named “Agro-Marine Processing and Development of Agro-Processing Clusters” or SAMPADA. With a proposed allocation of Rs 6,000 crore, it aimed to run over the period of 2016-20. It was renamed by the government as the Pradhan Mantri Kisan Sampada Yojana (PMKSY) in 2017 and serves as a Central Sector Umbrella Scheme.
Mission Details of PMKSY
Key objectives of PMKSY include supplementing agriculture, creating processing and preservation capacities, modernising and expanding existing food processing units with the increased level of processing objective, thus leading to the reduction of wastage. Its components cover Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Infrastructure for Agro-Processing Clusters, Creation of Backward and Forward Linkages, among others.
Financial Assistance and Awards
The MoFPI offers primarily credit-linked financial aid (capital subsidy) in grants-in-aid form to entrepreneurs. These funds are for setting up food processing/preservation industries, with grants-in-aid ranging from 35% to 75% of the eligible project cost under various schemes. These schemes are meant to undertake infrastructure and logistic projects and the establishment of food processing units.
Benefits of PMKSY
Sanctioned projects across India under PMKSY’s component schemes are projected to assist approximately 34 lakh farmers upon completion. An evaluation study by NABARD in 2020 revealed that captive projects under the scheme have led to an increase in farm-gate prices by 12.38%. Each project is estimated to support more than 9500 farmers.
Additional Initiatives Related to MoFPI
Aside from PMKSY, several related initiatives have been launched, including 100% Foreign Direct Investment (FDI), a special Food Processing Fund, and classification under Priority Sector Lending (PSL). In addition, tax exemptions, lower Goods & Service Tax (GST) rates, and the introduction of the “Operation Greens” programme to support the integrated development of Tomato, Onion, and Potato crops value chain are among the measures introduced. Furthermore, the PM Formalisation of Micro food processing Enterprises Scheme (PM FME Scheme) and the “Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)” are among other significant schemes launched.
This complete information has been sourced from PIB and highlights comprehensive details about the efforts made by the Ministry of Food Processing Industries to boost the food processing sector in India. This includes various initiatives aimed at improving agricultural productivity, enhancing food processing capabilities, and offering financial assistance and incentives to farmers and enterprises involved in the food processing industry.
